2018-60 Ordinance Authorizing the City of Decatur of Macon County, Illinois to Borrow Funds from the Water Pollution Control Loan Program, McKinley Sewer Rehabilitation Project, City Project 2017-22

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ORDINANCE NO. 2 018-6 0 ORDINANCE AUTHORIZING THE CITY OF DECATUR OF MACON COUNTY, ILLINOIS TO BORROW FUNDS FROM THE WATER POLLUTION CONTROL LOAN PROGRAM WHEREAS, the CITY of Decatur, Macon County, Illinois, operates its sewerage system ("the System") and in accordance with the provisions of the Art. VII, Sec. 6 of the Illinois Constitution and the Local Government Debt Reform Act, 30 ILCS 350/1 et seq. (collectively "the Act"); and WHEREAS, the MAYOR and CITY COLTNCIL of the City of Decatur ("the Corporate Authorities") have determined that it is advisable, necessary, and in the best interest of the public health, safety, and welfare to improve the System, including the following: The rehabilitation of the McKinley Avenue Sewer, CP 2017-22 and Related Structures, L17-5498 together with any land or rights in land and a11 electrical, mechanical or other services necessary, useful or advisable to the construction and installation("the Project"), all in accordance with the plans and specifications prepared by the consulting engineers of the City of Decatur, which Project has a useful life of 50 years; and WHEREAS, the estimated cost of construction and installation of the Project, including engineering, legal, financial and other related expenses is Seven Million, Nine Hundred Thousand Dollars ($7,900,000.00), and there are insufficient funds on hand and lawfully available to pay these costs; and WHEREAS, the loan shall bear an interest rate as defined by 35 Ill. Adm. Cade 365, which does not exceed the maximum rate authorized by the Bond Authorization Act, as amended, 30 ILCS 305/0.01 et seq., at the time of the issuance of the loan; and WHEREAS, the principal and interest payment shall be from City Fund 79, "Sewer Fund" which contains the Sewer User Fees collected by the City payable semi-annually, and the loan shall mature in 20 years, which is within the period of useful life of the Project; and WHEREAS, the costs are expected to be paid for with a loan to the City of Decatur from the Water Pollution Control Loan Program through the Illinois Environmental Protection Agency, the loan to be repaid from revenues of the System, and the loan is authorized to be accepted at this time pursuant to the Act; and WHEREAS, in accordance with the provisions of the Act, the City of Decatur is authorized to borrow funds from the Water Pollution Control Loan Program in the aggregate principal amount of Seven Million,Nine Hundred Thousand Dollars ($7,900,000.00), to provide funds to pay the costs of the Project; and 1